New York is legalizing online sports betting, but wagering will come at a cost.
Backed by Gov. Andrew Cuomo, a tentative agreement has been reached to allow online sports betting in the state, but through a model that is lottery-run and limits the number of sportsbooks. The agreement will be passed as part of New York’s $200 billion fiscal year 2022 budget.
More on New York’s lottery-run plan:
- Only one or two sportsbooks would operate online betting in the entire state.
- There will be a higher tax rate than the 12% seen in NY casinos.
- State tax revenue would reach about $500 million annually.
New York first legalized sports betting in 2013 but limited action to casinos. A federal case in 2019 expanded betting to retail sportsbooks, but now New Yorkers will be able to indulge from their phones or computers.
“We hope everyone in our state who has been spending money in New Jersey or Pennsylvania or perhaps illegally will try us and stay with us,” Sen. Joseph Addabbo told The Action Network.
Last year, New Jersey saw a sports betting handle of $6 billion, while Pennsylvania funneled $3.5 billion through its sportsbooks. Online sports betting could potentially make up 90% of New York’s betting handle.
DraftKings and FanDuel could be front-runners to operate mobile betting in New York, according to Cuomo.